Banking Industry

Question

Using the internet, research a consumer law issue. This can be a deceptive advertising case, false advertising claim, credit protection case, or some other consumer law case. Use some of the terminologies from the textbook to help you search. Briefly describe the case and the legal issue.

Determine if any ethical issues are raised in this case and explain why they are concerning. Here is the consumer law issue :

The banking industry is making forays into the high-cost lending market with “bounce protection” plans, a new form of high-cost credit that boosts fee income for banks. Using aggressive marketing techniques, banks are encouraging their low- and moderate-income customers to use bounce loans as a source of credit. Rather than denying a withdrawal, banks permit customers to overdraw at the ATM or through debit card transactions without informing them about the overdraft or accompanying fees.

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